China Compound Fertilizer Market in the First Half of 2016

This article introduces China compound fertilizer market situation in the first half of 2016 and a first-half 2016 report on NPK compound fertilizer imports & exports statistics data n volume, value and growth from China General Administration of Customs !The NPK compound fertilizer statistics data shows compound fertilizer imports & exports from Jan. to June 2016. According to China General Administration of Customs, in the first half of 2016, impacted by the slowdown of global economy, raw materials and market downturn of agricultural products, compound fertilizer market faced very difficult situations.

1.Low fertilizer price
As a whole, compound fertilizer market was fluctuated lowing mainly in the first half of this year, with a wide fall in January and February, stability in march and April and a shake slump in may and June.
The reasons for market downturn in January and February:

• The tumbled nitrogen fertilizer weakened fertilizer market confidence in market cost and altitude toward market support, a ten-years low of urea resulted in the factory price of Shandong small granules at 1200 ton/yuan;
• Dealers stocked negatively than before and Constant received less from factories which finally resulted in high stocks of enterprise and dropping price;
• The unbalanced cultivation areas increased fertilizer stock difficulties for fertilizer enterprise and dealers, also affected sentiments attitude of market;
• With K-fertilizer and ammonium chloride markets rebounded in May, exchange market kept a weak trend; also, influenced by a drop in corn market, local price was in weakness and lowing. As constant downward of the diammonium and a insufficient bounce of ammonium in June, market expect was a little unsatisfactory so the price of compound fertilizer slipped obviously.

2.High price fluctuation frequency
This year, farmers and dealers has went down their enthusiasm in fertilizer exchange due to the market downturn of agricultural products; also driven by instability of upstream raw materials, they paid little attention to company policies. At the same time, pressure on payment and delivery of enterprise really has aggravated burden on fertilizer market. Along with frequent price adjustment by corporations, it improved the relevance coefficient with upstream raw materials.

3.Exports volume declined
According to customs statistics, in January-May of 2016, China’s binary compound fertilizer export is 170 thousand tons, NPK ternary compound fertilizer – 4303 tons, drop 62% and 69% over 2015 respectively.